KEY POINTS:
A company offering free flights to Fiji has been linked to serial conman Michael Helmsby Knight - and is now under investigation by the Commerce Commission.
But Holiday Expo's insists consumers who have taken part in its "Fly Free to Fiji" promotion are protected, even though none of the resorts contacted by the commission have heard of the promotion.
Contact details on the Holiday Expo's "Fly Free to Fiji" promotional email point back to an Auckland office where Knight - who has dozens of convictions for running scams here and in Australia - works as a telemarketing supervisor.
Knight picked up the phone when the airline supposed to be offering the free flights called to ask how those fares would be paid for. Air Pacific had been receiving two or three calls a day from customers wanting to book their free flights - many of whom had already paid $99 to join a Holiday Expo's Fiji Travelers Club.
The email promised they would receive free return airfares to Fiji if they stayed at one of eight listed resorts for a minimum of seven nights - for $75 each a night. But none of the resorts contacted by the Commerce Commission had heard of the set-up, and Air Pacific's spokeswoman said she did not know about the club, the company or the free flights - until customers rang. "We're not linked to it at all. It's definitely a scam."
The spokeswoman said she had called the number on the email herself and asked Knight how he intended to pay for the free flights. "He said they were paying for the airfares out of the cost of the accommodation."
But, she said, the numbers didn't stack up - the resorts would never agree to such a deal, and because the group had not arranged anything with the airline, there was no guarantee that the seats would be available.
Director of Holiday Expo's, Andrei Gourbarev, said Knight was one of his 17 employees. He said he was aware of some of Knight's history, "but not as much as I know now".
"I am in discussions with my lawyer in respect to his employment."
However, Gourbarev said he was the sole director and shareholder of Holiday Expo's, and made the decisions. He said the Fiji Travelers Club was a project "that has taken a while to come to fruition", but that "clients can be comfortable knowing that their funds are safe".
Gourbarev said he owned a company called Business Generation Group - which does not exist, according to the Companies Office - which worked with Holiday Expo's to arrange bookings.
He said the group was "an absolutely legitimate business".
Deborah Battell, director of the Commerce Commission's fair trading branch, said it was "currently looking into the issue".
"From the inquiries that we have made, neither Air Pacific nor the named accommodation providers are aware of the promotion," she said.
"The commission urges consumers to be cautious about signing up for the offer... In the commission's experience, there is no such thing as a free lunch."
Gourbarev said he had not heard from the Commerce Commission.
Knight did not respond to the Herald on Sunday's attempts to contact him. He spoke to industry newsletter Travel Memo two weeks ago, which quoted him as saying that Fiji's accommodation was suffering, and only 10 per cent of rooms were occupied, making the package feasible.
He told the reporter he could "undercut Flight Centre-type deals by up to $1000" - but conceded that some of the resorts could cost more than double the $75 promised in the email.
Conman's colourful past
* 1994: Commerce Commission obtains interim injunctions from the Auckland High Court relating to alleged breaches of the Fair Trading Act by two travel companies promoted by Knight. Knight heads to Australia.
* 1995: Commerce Commission warns people not to buy into a scheme called Aloha Holidays, which Knight was involved in.
* 1996: Knight is banned from any business activity related to tourism, by the Queensland Supreme Court.
* 2000: Knight is banned for life from dealing with New South Wales consumers by the NSW Supreme Court.
* 2001: Declared bankrupt. Fined $28,000 for promoting fake vouchers, which said they were redeemable for $500 worth of Air New Zealand flights.
* 2002: Convicted for 33 breaches of the Fair Trading Act, relating to the businesses Budget Imports and Francais Imports. He was selling inferior cosmetics to consumers who had paid via credit card for big-brand products. Knight's bankruptcy meant he was fined just $3000 for scamming at least $174,000 from the public.
* 2004: Sentenced to 18 months in prison for a further 12 breaches of the Act. Fined $22,000 plus costs.
* 2005: A 'Whizkids' scheme comes to light. Knight allegedly charged Asian students thousands of dollars to find them jobs that didn't exist.
